are you sure the texture and mesh is very far in the distance ?
but yeah if you compare it with the texture and meshes behind it it is strange that just that 1 distant texture gets blurred out (it makes 0 sense why)

iTexMipMapMinimum=4
iTexMipMapSkip=0
had 0 effect on this blurring out
will try the whole config
No go also the new config lets the texture be blurred
PS: Wait i actually have 1 mod installed that i was testing on this new install Soolies Distance LOD Mod (which in the very far distance gave excelent results for big landscape masses) but why should it cause this behavior ?
Interesting Deleting Soolies Mod changes the look of the blurring so it seems the lod was applied on it as well, but it doesn't change the initial situation it is still blurred out also the same with ewis full config.
Without Soolies Distant Lod Mod

This becomes really interesting what the Engine does here


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